Just bought a mercedes w201 190D 1988 Model that has a Veggie car conversion for using WVO (waste oil). It is making a loud engine noise when accelerating or going up hill. My neighbor suggested that maybe it is about to throw a rod.

Here is the video http://YouTube.com/watch?v=uQ0qTpbBEhY

A couple of other possibly related problems are:
A lot of rich exhaust fumes
The climate control isn't working
Rough shifting
The idle speed changes from time to time.

I am wondering if this is something that is going to damage my engine, or do I just need to say change all the filters and fluids and drive into the sunset.

Any help is greatly appreciated!!

Thanks, James